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Revised: 05 Aug 2002
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CHANGING FOR THE BETTER By SURENDRAN APPAROO
Dr Behrouz Gholamrezaey is not afraid of change. The chairman and CEO of electronics components distributor BBS Electronics keeps abreast of changes in the electronics and telecommunications industries as well as what is happening around the globe.
Thus, he maintains a visionary outlook and is the company’s primary sentinel and proponent of change. He tells his 175 employees, spread through 15 offices all over Asia and the Middle East, not to be afraid of change, but rather to see it as opportunities opening up for them.
Little wonder then, despite the downturn in the global economy, his company has risen from 44th in last year’s Enterprise 50 list to ninth this year.
Turnover for the financial year 2001 has risen to $146 million, compared to $97 million for the previous year. For 2002, Dr Gholamrezaey predicts that the company’s turnover will be between $195 and $200 million.
"Times have been tough this year," he noted. "If the economy was not slow, we would have grown by more than 50 percent."
It is a testament to his foresight that the 54-year-old Iranian, who now calls Singapore home, was able to diversify to different markets insulated by the downturn. For example, BBS Electronics has opened seven offices in India, a market that is still vibrant.
Another diversification is into the telecommunications industry. While distribution is still the company’s bread and butter, Dr Gholamrezaey said: "We have to stay on our toes and keep learning and changing."
The company, founded in 1984, has developed two different products, among others, that will capitalize on the next wave of technology and take it beyond being just a distributor of electronics components.
The first is an energy meter similar to a conventional electricity meter found in homes, but it is completely digital and can compute tariffs and rates at different prices. This is especially useful in countries where the electricity rates are priced differently at different times of the day.
What makes it different is that it is tamper-proof, a perennial problem in developing countries, and can relay data on usage back to the utilities company, removing the need for manual meter reading. About seven of BBS Electronics’ customers are now manufacturing them for sale. Since few other companies have such a product, BBS Electronics has little competition in this arena.
The other product Dr Gholamrezaey is proud of is the DECLoop, a wireless local loop access system, developed by sister company BBS Access. "It has vast opportunities and we are targeting developing countries. It has voice and data access and transmits data at a relatively high speed," he said.
The DECLoop is a significant investment for the company which is close to signing agreements for this product with Thailand and the Middle East. Unlike a conventional telephone system based on cables and landlines, the DECLoop is based on using a switch, a base-station and a wall-set with an antenna, which telephone companies can install inexpensively. This provides immediate telephone availability and is wireless. It is especially effective if the area to be covered is dispersed, rather than concentrated as in an urban environment.
As with change, he is not afraid of competition. "We look at the big guys as our competition, he said, "but they have the financial muscle and reputation. We can compete by utilizing the latest technology."
One aspect of technology heavily BBS Electronics capitalizes on is the Internet. The company uses it to access its database of inventory, so that a sales representative can commit delivery to customers, as he knows the real-time availability of components in the warehouse, no matter where he might be in the world. As Dr Gholamrezaey succinctly put it: "Real time is the essence in the components business." The company’s warehouse is wireless, and stocks are bar-coded. Availability is updated up to the minute, leading to greater efficiency and accuracy.
Next on his agenda is to increase his company’s connections and visibility to his customers’ and vendors’ systems viewing their inventories and helping them plan for his purchasing. With this, BBS Electronics will be able to provide better prices and service to its customers, saving it lots of time in the process.
"We can live with lower margins and competition if our sales volume increase," said Dr Gholamrezaey. "In the past, margins were comfortably in the 20 per cent range, depending on the type of product. We have to reduce our operating costs."
The company does not stint on training for its workers. "You train, you provide value to your people and many stay back. If they leave for another company, and he’s good, my company’s reputation is enhanced," he said.
That is the one thing that will not change in BBS Electronics.
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